Lockheed's F-35 Is Huge in Japan

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Alas, poor Japan. They just cannot catch a break. First there was the "lost decade" of economic stagnation (now going on its third decade.) Then the earthquake-cum-tsunami-cum-nuclear meltdown. Now, on top of everything else, it seems the Japanese will likely get stuck with buying their second favorite fighter jet.

For years, Japan has tried to convince the U.S. Congress to sell it Lockheed Martin's (NYSE: LMT  ) F-22 Raptor warplane. As recently as two years ago, it looked like it might succeed -- U.S. concerns over export of sensitive weapons technology notwithstanding. But then, Congress canceled the F-22.

Now, with its favorite fighter verboten, Japan must choose between Boeing's (NYSE: BA  ) F/A-18 Super Hornet and Lockheed's other fifth-generation warplane, the F-35 Lightning II, to replace its aging fleet of F-4 Phantoms. The good news: America is not as concerned about transferring the F-35's technology as it was about the F-22. In an effort to cut Boeing out of the running, Lockheed has agreed to let Japan conduct final assembly of the F-35, if that's the plane Japan chooses to buy.

Foolish takeaway
Boeing isn't giving up easily. In fact, they've offered Japan the right to produce Super Hornets in-house if they like, through a "licensed production" agreement. But considering Japan had its heart set on a fifth-generation fighter all along, I doubt even this sweetener will make them settle for Boeing's fourth-gen bird.

Is Rich right? Will Lockheed land this multibillion-dollar foreign arms sale? Add it to your Fool watchlist and find out.

Fool contributor Rich Smith has no position in any stocks named above, but The Motley Fool owns shares of Lockheed Martin. The Motley Fool has a disclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1516380, ~/Articles/ArticleHandler.aspx, 5/27/2016 8:46:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 17,828.29 -23.22 0.00%
S&P 500 2,090.10 -0.44 0.00%
NASD 4,901.77 6.88 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/26/2016 4:02 PM
LMT $241.54 Up +0.70 +0.00%
Lockheed Martin Co… CAPS Rating: ****
BA $129.31 Up +0.45 +0.00%
The Boeing Company CAPS Rating: ****